There are over 2000 insurance providers in the United States. Of these, a couple hundred offer annuities and life insurance . The following is a list of the top 35 annuity companies and their security ratings. AM Best, Moody’s, Standard & Poor’s, and Fitch are the world’s leading financial rating institutions.
*Company ratings as of 01/11/2010. Subject to change without notice.
Rating: Descriptor: Definition: A++, A+ Superior Able to meet insurance obligations. A, A- Excellent Able to meet insurance obligations. B++, B+ Good Able to meet insurance obligations. B, B- Fair Vulnerable to unfavourable economic conditions. C++, C+ Marginal Vulnerable to unfavourable economic conditions. C, C- Weak Very vulnerable to unfavourable economic conditions. D Poor Extremely vulnerable to unfavourable economic conditions. E Under Supervision Company is under regulation, preventing normal business operations. F In Liquidation Company is ongoing voluntary liquidation. S Suspended Unevaluated due to inadequate information or lack of cooperation.
Rating: Descriptor: Definition: AAA Extremely Strong Market conditions are unlikely to affect a fundamentally strong position. AA Very Strong High-grade company with marginally larger long-term risks. A Strong Financially secure, but signs of possible long-term susceptibility. Baa Adequate Lacking in certain protective elements over the long term. Ba Questionable Ability to meet obligations is questionable. B Poor Long-term ability to meet obligations on time is small. Caa Very Poor May be in default of financial obligations already. Ca Extremely Poor In default of financial obligations. C Extremely Poor Very poorly positioned to offer financial security.
Rating: Descriptor: Definition: AAA Extremely Strong Very unlikely to be affected by adverse economic conditions. AA Very Strong Unlikely to be affected by adverse economic conditions. A Strong Marginally more likely to be affected by adverse economic conditions. BBB Good May be affected by adverse business conditions. BB Marginal Adverse business conditions may lead to inability to meet obligations. B Weak Adverse business conditions are likely to affect ability to meet obligations. CCC Very Weak Depends on favourable business conditions to meet obligations. CC Extremely Likely to not meet all financial obligations. R Regulatory Action Subject to regulation due to insolvency. NR Not Rated No opinion.
Rating: Descriptor: Definition: AAA Exceptionally Strong Very unlikely to be affected by adverse economic conditions. AA Very Strong Not significantly vulnerable to adverse economic conditions. A Strong Low expectation for interruption of payments. BBB Good May be affected by adverse economic conditions. BB Moderately Weak Contractual obligations are now vulnerable. B Weak Significant risk for interruption of payments. CCC Very Weak Strong likelihood for interruption of payments. CC Extremely Weak Interruption of payments is probable. C Distressed Interruption of payments is imminent.
